India's ITC shuts cigarette plants from May 4

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A man lights a cigarette in front of a kiosk in Kolkata, India, April 7, 2016. REUTERS/Rupak De Chowdhuri

MUMBAI (Reuters) - India’s biggest cigarette maker ITC Ltd shut its plants from May 4 to comply with a new stipulated pictorial warnings rule issued by the federal government, the company said in a statement.

India’s top court told tobacco companies on Wednesday they must adhere to a new federal rule requiring much larger health warnings on cigarette packs, in a major setback for the $11 billion industry.

The court also transferred all petitions by cigarette manufacturers pending in various courts to the Karnataka High Court for further hearing. The companies had objected to the new federal rules.

“...the Company has had to shut its cigarette factories from May 04, 2016 until the Company is in a position to comply with the interim requirements pending hearing in the Karnataka High Court,” the statement said.